October 2025 Housing Market: Inventory Growth Slows as Buyer Activity Stays Strong

The U.S. housing market continues to stabilize as 2025 draws to a close. Inventory growth has moderated slightly, but buyer demand remains resilient across all price tiers. While new listings slowed in October, strong contract activity and steady pricing suggest that the market is settling into a balanced rhythm after several years of volatility.

Inventory Growth Levels Off, Market Nears Buyer Territory

After months of expansion, inventory growth has begun to ease. Total housing inventory rose 19.6% year-over-year, marking a continued return to pre-pandemic levels. Months of inventory now stands at 5.43 months, indicating a neutral market that is approaching buyer-friendly territory.

The median days on market reached 55 days, up 5.8% from a year ago, reflecting a slower yet healthy transaction pace typical of late-year activity. Despite fewer new listings, the overall supply of homes remains robust, supported by sustained buyer activity.

Buyer Activity Holds Firm Across All Price Ranges

Buyer demand continued to show strength through October. 272,257 properties went under contract, a 10.4% increase compared to October 2024. Over the past 52 weeks, 2,735,025 properties have gone under contract, up 4.1% year-over-year.

Contracts rose across every price tier, with the largest year-over-year gains in the $600k–$1M (+6.5%) and $1M+ (+8.2%) segments. This broad-based strength highlights ongoing buyer engagement, even amid higher supply and evolving affordability dynamics.

Prices Hold Steady as Sellers Adjust to Market Realities

Home prices remained stable through October. The median single-family listing price was $449,062 (+0.3% YoY), while the median closed price rose 3.5% to $438,647. Month-over-month, the median listing price dipped 1.7%, while the closed price increased 2.8%, suggesting that final sales are holding firm even as sellers moderate initial expectations.

At the same time, price cuts rose 24.2% year-over-year, the highest level since 2020. This indicates that sellers are adapting to shifting conditions, helping facilitate continued transaction flow in a more balanced market environment.

Rental Market: Expanding Supply Eases Pressure on Prices

The single-family rental market remains active, with supply rising substantially. Rental inventory grew 24.1% year-over-year, the highest annual increase so far in 2025. The median listed rent fell 2.1% YoY to $2,473, and was down 0.7% month-over-month, reflecting the impact of expanding rental options across markets.

Key October 2025 Highlights

• Net New Listings: 219,618 in October (down 9.5% YoY).
• Contracts: 272,257 in October (up 10.4% YoY).
• Inventory: +19.6% YoY; months of supply at 5.43.
• Days on Market: 55 (up 5.8% YoY).
• Prices: Listing +0.3% YoY | Closed +3.5% YoY.
• Rental Market: Inventory +24.1% YoY; rents -2.1% YoY.

The Bottom Line

The October 2025 Market Pulse report underscores a U.S. housing market that is approaching true balance. Inventory levels continue to expand, price growth has moderated, and buyer activity remains solid across all price segments. As 2025 comes to an end, market conditions are expected to remain steady, offering both buyers and sellers greater predictability heading into 2026.

Explore the full October 2025 Market Pulse Report to access detailed data, trends, and regional breakdowns shaping today’s housing market.

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